Insurance Industry News : Detecting Insurance Industry Confessions

The Texas Windstorm Insurance Association wants a judge to give it immunity against paying attorneys’ fees, penalties, interests and other expenses beyond actual damages in litigation claiming it acted in bad faith or maliciously in dealings with policyholders. In Bakht Khattak vs. Texas Windstorm Insurance Association, the insurer is seeking sovereign immunity, which means it can’t be sued without its consent.

If Judge Susan Criss of the 212th District Court in Galveston grants sovereign immunity in that case, her decision could apply to any lawsuit filed against the insurer since Hurricane Ike, which struck in September with 110 mph winds and devastating storm surge. The windstorm association isn’t seeking dismissal of the lawsuit or others like it, officials said.

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